OCR Text |
Show RAILROADS ASK RATE INCREASE The Interstate Commerce Commission Com-mission has opened hearings on the question of restoring certain freight rate increases, which have been under suspension since May, 1943. The increases, which were cancelled, 'would add about $350,-000,000 $350,-000,000 additional revenue to the railroads yearly and the carriers take the position that the increases increas-es are needed to offset the drop in both freight and passenger traffic, traf-fic, which they content will set in next year. The OPA has petitioned the ICC to refuse the increase and to cut off a recent ten per cent passenger passen-ger fare boost, which added $150,-000,000 $150,-000,000 annually to carrier income. The OPA, in support of its position, po-sition, cites figures to show that the profits of railroads have gained gain-ed more than two thousand per cent, or about four times the increases in-creases of other industries. This is disputed by Dr. J. H. Parmalee, statistician for the Association of American Railroads, who says rail profits have gone up only four hunded sixty-three percent. The carriers should be allowed reasonable profits, especially in view of the fact that they must make considerable capital investments invest-ments to meet bus and aircraft competition in the post-war period. per-iod. However, regardless of whether wheth-er the OPA's estimate of increased profits or Dr. Parmalee's figures are taken, there seems to be little reason for increasing freight rates and considerable argument to support the ten percent reduction in passenger fares. The railroads, like other business busi-ness enterprises, are making money mon-ey at a great rate during the war emergency. Naturally, they cannot can-not contend that they need increased in-creased income for present expenditures, expen-ditures, and consequently they take the position that something is go- ing to happen in the future that will make it necessary for the railroads rail-roads to have greater profits at the present time. In this maneuver, the carriers follow the example of most business busi-ness interests. In hard times, they contend for increased rates because be-cause of necessity, and in good times, they need increased rates to prepare for the future. No matter mat-ter how good business happens to be, the argument is always for higher rates and great profits. |